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There is a corollary to that advice, which is “doing the right things is more important than doing things right.&# Sounds simple but in practice I promise you most organization fall into the latter trap. Here’s how it goes: You have a business development group with two people. You have a marketing department with three people.
What you really want to know is which campaigns drove “bottom of funnel activities” such as: Purchases, newsletter signups, subscribers, comments and so forth in the same way you’d be tracking this on Google Analytics for your SEO / SEM campaigns, direct referrals, etc. Startup Advice'
SEO / SEM are promotional techniques for marketing through the Google distribution channel, which have yielded huge benefits to many companies – Yelp being a prime example. When I first started blogging Digg was still at its peak. Having a high position can make a huge difference to “organic” downloads.
<iframe width="560" height="315" src="[link] frameborder="0" allowfullscreen></iframe> The catalyst for Brad’s evolving view of marketing was THIS blog entry by Chris Moody in which he pointed out that much of Foundry Group’s thought leadership efforts are essentially a form of guerilla marketing.
How many adds came through organic SEO? How many through SEM? per click on an SEM basis this is NOT your cost to acquire a customer – you need to add conversion rate. How many social networks, picture sharing sites, new aggregators or blogs can we really spend time on? How many through affiliate deals? In 6 months?
StackOverflow is a free Q&A site for software developers, blending functionality from wikis, blogs, forums, and social voting (similar to Digg/Reddit); 7.1mm unique visitors per month; new funds will be used to build out engineering team and build out product. I first discovered it from Dharmesh Shah’s blog OnStartups.
If you do all these things right by displaying other people’s ads on your website or blog, you will make money from advertising – like Google and Facebook, who offer services for free, and still make millions in revenue. If you do all these things right as a search results advertiser, you will make money from selling your product.
He and his team didn’t stop there… they dug into SEM and affiliates among other practices in their toolkits. Following on with the Hulu example, they worked so hard to convert individuals who had an appetite for the service already, they were an obvious (but often neglected in many organizations) segment to reengage!
So if you paid $100 for a customer who converted via a Facebook ad or Google search ad (SEM) that is not your CAC. The reason one would accept losses is when they are investments in fueling faster growth. The first mistake that mostly only rookies make is to measure the CAC by looking at the attributable marketing costs of acquiring a user.
Unattributed – There is no such thing as organic customers. However, Search Engine Management (SEM) is not a “set and forget” exercise. You must apply dedicated resources to your SEM efforts, either in-house or via a trusted third-party partner, in order to maximize customers acquired from this channel. It does not happen.
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